In strategic analysis, what does the acronym PEST stand for?

In strategic analysis, the acronym PEST stands for Political, Economic, Social, and Technological factors. This framework is used to analyze and understand the external environment in which a company operates. Each component of the PEST analysis addresses different aspects that can impact an organization's performance and decision-making.

• Political factors include government regulations, political stability, and policies that may affect the business environment.

• Economic factors encompass the economic conditions, such as inflation rates, exchange rates, and economic growth trends, which can influence consumer behavior and business operations.

• Social factors reflect societal trends, demographics, and cultural norms that can impact how products or services are received within a market.

• Technological factors involve the rate of technological advancements and innovations that might disrupt or improve business processes.

This structured analysis helps organizations identify opportunities and threats in their external environment, enabling better strategic planning. The other options do not represent recognized frameworks in strategic analysis, which is why they do not correctly answer the question.